12 59 Which of the following is NOT a characteristic of a liability? o It represents a probable, future sacrifice of economic benefits It is often payable in cash but not always O It is a non-owner claim to the assets O It results from past transaction or events O All of the above ARE characteristics of a liability. Use the following information for questions 15 thru 18 Rock Adventures has 15 employees each working 40 hours per week and earning $30 per hour. Federal Income Taxes are withheld at 15% and State Income Taxes at 6%. FICA Taxes are 7.65% each for the employee and employer. State Unemployment Taxes are 3.0% and Federal Unemployment Taxes are 0.8%. 18 5 What is the total amount due to the State Government for taxes in the first week of January? O $1,080 O $144 O $1,620 O $540 O None of the answers are correct. Use the following information to answer questions 5, 6, 7, and 8. The following data relates to a new piece of equipment ABC Company purchased January 1: Total Cost: $825,000.00 Estimated Residual Value: $25,000.00 Estimate life in years: 10 years Estimated total number of wheel bolts the equipment will produce over its useful life: 4,000,000 bolts Actual wheel bolts produced in: Year 1: 1,000,000 bolts Year 2: 900,000 bolts Year 3: 1,300,000 bolts Year 4: 800,000 bolts 8 53 If ABC Company uses the Activity-Based method to depreciate the equipment - What would be the balance in the Accumulated Depreciation account at the end of Year 2? O $200,000 $180,000 $380,000 $640,000 O None of the answers are correct. 22 55 A $500,000 bond issue sold for $510,000. Therefore the bonds: Sold at a premium because the stated rate was higher than the effective rate. Sold for the $500,000 face amount plus $10,000 of accrued interest. O Sold at a discount because the stated interest rate was higher than the effective rate. Sold at a premium because the effective interest rate was higher than the stated rate. None of the answers are correct